Take measurements of the area and use masking tape to place a temporary line to show where the room will be divided.
Evaluate how much natural light comes into the room to better gauge what type of room divider to use: one that allows light to filter through or one that blocks the light.
Install a row of bookcases to divide the room and to provide the added bonus of extra storage, which is often an issue in small spaces.
Create a soft wall with curtains; install a set of wire rope clips to hang the appropriate length of aircraft cable and then slip the panels or curtains over the cable. Use curtains or panels when you would like the option to have the space as one area.
Place decorative screens in the designated area where the room needs dividing. Use Japanese screens or, for a more personal touch, place photo screens along the area to be divided.